Lawsuit charges Chrysler with redlining

February 03, 2003
A lawsuit filed Monday charges that DaimlerChrysler's financing subsidiary denied financing to creditworthy applicants in the Chicago area who were black on the basis of their race and where they lived.
     The lawsuit, filed in U.S. District Court on behalf of six Chicago-area residents but seeking class-action status, also charges that the financing subsidiary unlawfully repossessed vehicles from 70 black customers who did manage to get credit.
     The lawsuit charges that Auburn Hills, Mich.-based DaimlerChrysler and its subsidiary Chrysler Financial Co. knew about and tolerated redlining at its regional headquarters in Lisle.
     Redlining is the practice of denying credit or failing to provide services to people in certain areas based on the neighborhoods' ethnic makeup.